| Home | About Us |

QQQ Options Trading
Don’t let your emotions get in the way! Make superior returns trading QQQ options with us.
Our unique, volume-based market timing strategy for the NASDAQ 100 really delivers…

 

  Home FAQ Support About Us

Sign Up

Sign Up

 Trade History
 Greater Profits
 Simple to Use
Trade Example
 Signal Example
 
  FAQs
 
 Support
   
 Information
Index Trading
About Nasdaq 100
About QQQ
About QQQ Options
Why QQQ Options
Options Investing
Technical Analysis
Market Timing
Options Trading
Options Trading Tips
Options & Trend
Read Options Symbol
Put Options
Buy Call Options
Sell Call Options
Open Interest
Market Volatility
Expiration Date
Fair Value
Call/Put Ratio
Call/Put Oscillator

Options Definition: Expiration Date

On an option exchange, every 3rd Friday of the month is expiration day. A number of option series expire on this day.

At expiration all call options with a higher strike price than the expiration price of the underlying stock/currency or index will be worthless. All series with a lower strike price will have value and will be exercised. In the case of put options the opposite applies.
For all holders of call options it will be optimal when the value of the positions at expiration is as low as possible.

Options expiration date is the most important factor in calculating an options price:

  • The Black Scholes formula is used to price a European style option by factoring in current stock price, strike price, time until expiration, level of interest rates, any dividends and the volatility of the underlying security.
  • The binomial model is used to price American style options. The binomial model calculates a tree of stock prices for given time intervals within the expiration period of the option using the volatility of a stock and time to expiration to find out how much a stock will increase or decrease in value. This calculation gives all possible prices of a stock. Then, the option prices of the stock are calculated backwards, from expiration to present. These prices are obtained by using risk neutral valuation. Ultimately, we get one price for the option.

For Instant Access,
Sign up Now!
30-day Money Back Guarantee!

Just one winning trade
could pay for your membership for years to come!

 

Market Indicators

Index Last %
NYSE 6,630.17 +1.31
NASDAQ 2,063.01 +2.15
AMEX 1,222.72 +1.43
DJI 10,583.55 +0.84
DJT 2,895.87 +2.20
DJU 269.26 +0.62
Nasdaq 100 1,497.78 +2.24
S&P; 100 565.91 +1.13
S&P; 500 1,142.39 +1.22
S&P; 400 594.21 +1.73
S&P; 600 280.42 +2.41

As of Feb. 6,2004 12:50

@ MarketVolume.com


 

MV | TF | TG | HGH | Q-TS | S-TS | D-TS | O-TS | M-TS | IndTS | IndTA | IndDT | IndTim | SML | StChA | SMS | Q-MT | Q-OT | Ind-FT

Disclaimer | Privacy | Advertise with Us | Site Map
© 1997-2004 Highlight Investments Group. All Rights Reserved.

2/6/2004